Short-term, holiday businesses are very different from businesses that run the whole year round. They have different problems and solutions that every business owner considering opening one should be wary of. Some examples of businesses like this include holiday decoration pop-ups, Santa-for-hire businesses, and even caroling groups.
Small Business Protection for Short-Term Operations
With these businesses, it makes sense to only operate on certain months of the year. Because their market is seasonal, this means they’re not paying for fixed costs when there’s no or little money coming it. To find out more about small business protection for short-term operations, here are some tips.
Draft a Contract
This is especially true for services — like providing entertainment or subletting your properties for the holidays. A contract ensures that your interests are protected, whether that’s payment or taking care of your property. It also gives your customers a sense of security, assuring them that you will deliver what you agreed on. In the end, a contract crystalizes the responsibilities and benefits that both sides should expect.
Consider LLC
There are different types of companies. The most common ones are a sole proprietorship, partnerships, and corporation. One form of a corporation is an LLC or a limited liability company which is a lot like a corporation but it gives you more flexibility.
A lot of holiday companies migrate from one place to another — like doing a performance in one town then the next. An LLC lets you do that without worrying about the residency requirement, but still protecting you from the perils and lack of safety net of a sole proprietorship. All the partners are still protected by the veil, but you can be more unorthodox with the setup and structure.
With an LLC, you get the credibility of a corporation with suppliers and lenders — so you can apply for loans and transact with bigger companies — but you don’t have to worry about as much paperwork. This is a great set up if you’re only operating three to four months out of a year.
Copyright Products
Because you’re a seasonal business, you have to protect what products you do have. It’s the best way to make sure you still have a revenue stream the following year. This is a simple enough task. If you have unique products, you can get a design patent or if you have a great tagline that people easily recall, copyright it. Protect the brand that people only see once a year. That’s how they remember you.
We hope this was helpful for you, and wish you the best of luck with your holiday business endeavors!
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